Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to review the help-to-buy ISA threshold in light of rising house prices.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Help to Buy: ISA scheme aims to help those struggling to save enough to get onto the housing ladder. The property price cap allows the Government to target support at the first-time buyers who need it the most. The scheme includes a higher property value cap of £450,000 for properties in London compared to £250,000 anywhere else in the UK.
The latest statistics show that since the scheme was launched in 2015 410,075 property completions, including more than 26,000 completions in London, have been supported through the scheme with a mean property value of £175,010 compared to an average first-time buyer house price of £222,712. The Government keeps all aspects of savings policy under review.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 24 May 2021 to Question 3084 on Net Zero Review, for what reason his Department did not publish the final report of his Department’s Net Zero Review in spring 2021; and what recent progress his Department has made on publishing that report.
Answered by Kemi Badenoch - President of the Board of Trade
HM Treasury’s Net Zero Review final report will be published in due course, and in advance of COP26.
It will be an analytical report that uses existing data to explore the key issues and trade-offs as the UK decarbonises. Against a backdrop of significant uncertainty on technology and costs, as well as changes to the economy over the next 30 years, it focuses on the potential exposure of households and sectors to the transition, and highlights factors to be taken into account in designing policy that will allocate costs over this time horizon. In line with the Review’s terms of reference, the report will not include policy recommendations.
The Review forms part of a cross-government effort to support the UK’s transition to net zero. The government’s Net Zero Strategy will be published later this year.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of the proposal by the games industry to increase video games tax relief from 25 per cent to 32 per cent.
Answered by Jesse Norman
In 2019-20 the Video Games Tax Relief (VGTR) supported UK expenditure of £355 million on the production of 150 video games.
The Government keeps all tax reliefs under review, and regularly receives proposals for changes to tax reliefs. When considering changes, HM Treasury must ensure they provide support to businesses across the economy in a fair way.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to prevent insurance companies from implementing high increases to annual indemnity insurance costs during the covid-19 outbreak for small companies who have not had to make a claim.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Insurers make decisions about the terms on which they will offer cover following an assessment of the relevant risks. The respective capabilities of insurers to assess risk is a key element on which they compete. This competition is important and leads to better products and lower prices for consumers.
Insurers must treat customers fairly and firms are required to do so under the Financial Conduct Authority’s (FCA) rules. In addition, the FCA has said that, in light of COVID-19, insurers must consider very carefully the needs of their customers and show flexibility in their treatment of them.
The Government is working closely with the FCA to ensure that the rules are being upheld during this crisis and fully supports the regulator in its role.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether Business Rates Relief are planned to be extended to English language teaching centres.
Answered by Jesse Norman
This year, due to the direct adverse effects of COVID-19, the Government has provided an unprecedented business rates holiday for eligible retail, hospitality and leisure properties worth over £10 billion. The Government has also frozen the business rates multiplier for all businesses for 2021-22.
The Government has provided various schemes to support firms, including English language teaching centres, including Coronavirus Business Interruption Loans, Bounce Back Loans, grants and VAT deferrals.
The Budget will set out the next phase of the Government’s plans to tackle the virus, protect jobs and support business.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will include adult gaming centres in the VAT reductions available to the hospitality industry.
Answered by Jesse Norman
The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and will run until 31 March 2021.
This policy will cost over £2 billion and it is necessary for a boundary for eligibility to be drawn. The Government keeps all taxes under review, and any future decisions on tax policy will be made at Budget.
The Government has announced a significant support package to help businesses from a whole range of sectors through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the Government-backed loan schemes.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the findings of the Report of the Independent Investigation into the Financial Conduct Authority’s Regulation of London Capital & Finance plc, published 23 November 2020, what the timetable is for the FCA to pay compensation under the complaints scheme to bondholders.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
I refer the Honourable Member to my answer given on 21 January to PQ UIN 138838. As set out in my Written Ministerial Statement of 17 December 2020, there are three main channels through which London Capital & Finance plc (LCF) bondholders can seek compensation. These are the administration process, the Financial Services Compensation Scheme (FSCS), and the Financial Conduct Authority’s (FCA) Complaints Scheme.
The Written Ministerial Statement also set out that, taking into consideration the specific and complex set of circumstances surrounding the collapse of LCF, the Treasury will set up a compensation scheme which will assess whether there is justification for further one-off compensation payments in certain circumstances for some LCF bondholders. The Government will announce further details in due course.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how the Government's compensation scheme that was announced in response to the Report of the Independent Investigation into the Financial Conduct Authority’s Regulation of London Capital & Finance plc, published on 23 November 2020, will be administered.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
I refer the Honourable Member to my answer given on 21 January to PQ UIN 138838. As set out in my Written Ministerial Statement of 17 December 2020, there are three main channels through which London Capital & Finance plc (LCF) bondholders can seek compensation. These are the administration process, the Financial Services Compensation Scheme (FSCS), and the Financial Conduct Authority’s (FCA) Complaints Scheme.
The Written Ministerial Statement also set out that, taking into consideration the specific and complex set of circumstances surrounding the collapse of LCF, the Treasury will set up a compensation scheme which will assess whether there is justification for further one-off compensation payments in certain circumstances for some LCF bondholders. The Government will announce further details in due course.